Bank Rakyat Home Loan

Bank Rakyat Home Loan is one of the popular financial services offered by the bank to its consumers across Malaysia. This loan is arranged under Islamic principles by following Murabahah and Tawarruq. Basically, the bank buys the property from the seller (the loan applicant will buy on behalf of the bank) and sells it to the applicant at a price that is the sum of buying price and profit. The applicant agrees to pay this money in installments.

You’re probably eligible for an Bank Rakyat Home Loan if you are

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At least 18 years old

Less than 65 years old

Salaried / Self-employed with regular income

Earn more than the minimumincome required

Your Bank Rakyat Home Loan amount eligibility is based on these factors

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Instalment limited to about 50% of monthly income

Loan capped @ Up to 95 % including MRTT

Instalments of other loans loweryour eligibility

Increase your eligible Bank Rakyat Home Loan amount by these steps

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Make your spouse a co-applicant,and her income will addto your eligibility

Bank Rakyat Home Loan Interest RatesUpdated on 09 Dec 2016

Bank Rakyat Home Loan Details

Margin of Finance

Up to 95 % including MRTT

Tenor

35 years

Guarantor Requirement

Guarantee Required

The Bank Rakyat is an Islamic cooperative bank based out of Kuala Lumpur, Malaysia. The bank has been operational for more than 60 years now and is among the premier financial institutions in the country. The bank was established after various tie-ups between banks and become a full-fledged Syariah compliant bank in 1993.

Bank Rakyat Home Loan Malaysia

The bank offers home loans to customers so that they can fulfil their dreams of staying at a place of their choice. The home loan, called Manzili Selesa home loan is a capped floating rate product, which means that the profit rate is fluid and changes with central bank declarations. You can benefit from lower rates as and when they are announced, while increase in profit rates has been capped to a certain percentage. This way, you stand to benefit from lower rates but won’t burn a hole in your pocket by a lot when profit rates rise.

The housing loan is offered under Islamic principles of Tawarrup and Murabahah, which ensures that the loan is priced optimally for customers.

Features of Bank Rakyat Home Loan

This is a feature packed home loan product aimed at a wide audience. Primary features here include:

How to apply for bank Rakyat Home Loan?

The application process for Bank Rakyat home loan is quite simple and can be completed in a short time. You simply need to fill out the required information in the application form and submit supporting documents as requested by the bank.

Eligibility

Applicants should be over 18 years of age and less than 65 years.

Applicants who are Malaysian or Singaporean citizens can apply.

Applicants should be earning at least RM 24,000 p.a.

Documents required

If you are a private sector or government employee, you need to submit the following supporting documents:

Last three months’ salary slips

Latest EPF statement or EA form

Last 3 months’ bank or account statements

Identification card (MyKad) copy

If you are a self-employed individual, the following needs to be submitted along with application form:

Last 3 months’ account or bank statements

Identification card copy (MyKad)

Form B given to LHDN or payment receipt

If you are a permanent resident of Malaysia or a Singaporean earning fixed income, the following needs to be submitted:

Verification letter from employer

Certified copy of passport

Last three month’s payslips

Last three months’ bank or account statements

FAQs on Bank Rakyat Housing Loan

1. Can I apply for the loan as a permanent resident of Malaysia?

Yes, permanent residents are free to apply for Bank Rakyat home loan provided they fulfil other criteria.

2.How do I make the monthly payments?

There are flexible modes of loan repayment including salary deduction, standing instructions on savings or current accounts, postdated cheques or Biro Perkhidmatan Angkasa (BPA) for government employees.

3.What if I make extra payments in a month?

Any additional payments you make on top of your monthly instalment amount will be treated as advance payment on future instalments. This means that the payments will not be included towards principal repayments.

4.Do I have to get any insurance cover for myself or the property?

Yes, insurance is mandatory in case of fire insurance for the property. MRTT insurance is recommended to fulfil your repayment obligations even when you can’t make the payments without burdening your family members.

5.What is the lock in period here?

The lock in period is 5 years, which means that you cannot repay the loan within 5 years.

6.This is my third home purchase through Bank Rakyat home loan. How much financing can I expect?

For applicants buying their 3 property or more, the financing is limited to 70% of the value of the property.

Other Products offered by Bank Rakyat:

Apart from offering Home Loan,Bank Rakyat offers other products and services which include: